Investment firm Wall Street Zen has downgraded shares of International Flavors & Fragrances (NYSE:IFF) from a “hold” rating to a “sell” rating in a report released on October 7, 2023. This change reflects a growing concern among analysts regarding the company’s stock performance amid fluctuating market dynamics.
Several other financial institutions have also reassessed their outlook on International Flavors & Fragrances. Argus has decreased its price target from $85.00 to $70.00 while maintaining a “buy” rating. Meanwhile, Citigroup has lowered its price target from $82.00 to $75.00, attributing a “buy” rating to the stock in a report published on October 6, 2023.
Additionally, Barclays recently raised its price target from $72.00 to $75.00, assigning an “overweight” rating in a note issued on November 7, 2023. Conversely, Weiss Ratings reiterated a “sell (d-)” rating on International Flavors & Fragrances on December 22, 2023. BNP Paribas Exane has also adjusted its price target down from $96.00 to $92.00 while maintaining an “outperform” rating as of September 11, 2023.
As it stands, twelve investment analysts have rated the stock with a “buy” rating, four have assigned a “hold” rating, and two have issued a “sell” rating. According to data from MarketBeat.com, the stock currently holds an average rating of “Moderate Buy” with a consensus target price of $85.02.
Recent Financial Performance
International Flavors & Fragrances reported its latest earnings on November 4, 2023, revealing earnings per share (EPS) of $1.05, surpassing the consensus estimate of $1.02 by $0.03. The company generated revenue of $2.69 billion for the quarter, exceeding analysts’ expectations of $2.65 billion. Despite these positive figures, the company’s revenue declined by 7.9% compared to the same quarter last year, when it reported an EPS of $1.04.
Analysts project that International Flavors & Fragrances will achieve an EPS of $4.32 for the current fiscal year, indicating a cautious outlook for the company as it navigates market challenges.
Institutional Investor Activity
Recent trading activity highlights a shift among hedge funds and institutional investors regarding International Flavors & Fragrances. Blue Trust Inc. increased its holdings by 7.6% during the second quarter, now owning 2,184 shares valued at approximately $161,000. Similarly, Rafferty Asset Management LLC grew its stake by 0.7% in the third quarter, holding 21,837 shares worth about $1,344,000.
Other institutional investors, including Clearstead Advisors LLC and UMB Bank n.a., have also raised their positions in the company. Institutional ownership is substantial, with institutional investors controlling approximately 96.02% of the company’s stock.
The shifts in analyst ratings and institutional investor activity underscore the evolving landscape for International Flavors & Fragrances. As the company continues to adapt to market conditions, investors will be watching closely to see how these changes impact its future performance.
